Peabody Energy has entered into an agreement with China’s Shenhua Group to create Sino-Pacific Coal Trading Corporation Pte. Ltd, a Singapore-based joint venture company that will supply Shenhua’s growing coal import demand with thermal coal from Peabody’s global production and coal trading platform.
Peabody President of Asia and Trading, Christopher Hagedorn, said the new joint venture between the two companies represents a significant milestone in Peabody's Asia growth strategy.
"Globally, Shenhua is one of the world's largest importers of thermal coal and this important partnership will give Peabody a priority position to supply Shenhua's growing import needs with coal from Peabody's expanding global platform," said Hagedorn. "Annual world coal demand is expected to grow by 1.2 billion t in the next five years, with more than 80% of projected global demand growth in China and India. Over the last decade, Peabody has been reshaping its global platform to better serve this high-growth region."
Subject to regulatory review, Sino-Pacific Coal Trading Corporation is expected to begin operating in 2014, sourcing coal from key global supply basins to provide Shenhua with thermal coal for its Chinese generating subsidiaries.
Adapted from press release by Katie Woodward
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